Kampala, Uganda – Uganda has emerged as the East African Community’s (EAC) most attractive investment destination, surpassing its regional peers.
According to the United Nations Conference on Trade and Development (UNCTAD), Uganda secured $1.4 billion in Foreign Direct Investment (FDI) in 2022, accounting for 33% of total FDI inflows into the EAC.
Tanzania followed closely with 26%, while Kenya garnered 20%. Rwanda, Burundi, and South Sudan trailed behind with 11%, 6%, and 4%, respectively.
Uganda’s FDI inflows surged 61% from $899 million in 2021, driven by its strategic location, favorable business environment, and investments in infrastructure.
Manufacturing attracted the largest share of investments, with $444 million. The mining sector secured $201 million, while real estate and agriculture garnered $144 million and $100 million, respectively.
European Union countries accounted for 63% of total FDI, followed by Asian nations (21%), African countries (11%), and American nations (5%).
Kampala, Uganda’s capital, emerged as the top investment hub, followed by Dar es Salaam, Tanzania, and Nairobi, Kenya.
However, regional challenges persist, including corruption, inadequate infrastructure, and regulatory frameworks.
Experts predict continued growth in Uganda’s FDI inflows, driven by the region’s economic prospects.
“Uganda’s attractiveness stems from its strategic location and business-friendly environment,” said an UNCTAD spokesperson.
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